Thirty-Year Bond Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department finished off this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing this month's sale of $18 billion worth of thirty-year bonds attracted above average demand.

The thirty-year bond auction drew a high yield of 3.908 percent and a bid-to-cover ratio of 2.52.

Last month, the Treasury sold $21 billion worth of thirty-year bonds, drawing a high yield of 3.741 percent and a bid-to-cover ratio of 2.43.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.36.

On Monday, the Treasury Department announced the results of this month's auctions of $40 billion worth of three-year notes and $32 billion worth of ten-year notes, revealing the sales attracted mixed demand.

While the three-year note auction attracted above average demand, the ten-year note auction attracted below average demand.